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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2012
Income (Loss) Before Income Tax Provision | Income (loss) before income tax provision consists of the following (in thousands):
|  | Year ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
United States |  | $ | (19,319 | ) |  | $ | (4,925 | ) |  | $ | 66,036 |
International |  |  | 10,234 |  |  |  | 16,558 |  |  |  | (60,597 | )
Income (loss) before provision for income taxes |  | $ | (9,085 | ) |  | $ | 11,633 |  |  | $ | 5,439 |
Provision for Income Taxes | The provision for income taxes consists of the following (in thousands):
|  | Year ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 3,994 |  |  | $ | 3,184 |  |  | $ | 7,940 |
State |  |  | 433 |  |  |  | 755 |  |  |  | 1,820 |
International |  |  | 1,193 |  |  |  | 1,222 |  |  |  | 755 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (2,053 | ) |  |  | (3,618 | ) |  |  | 2,267 |
State |  |  | (1,362 | ) |  |  | (392 | ) |  |  | (1,768 | )
International |  |  | (353 | ) |  |  | 1,703 |  |  |  | (1,240 | )
Total provision for income taxes |  | $ | 1,852 |  |  | $ | 2,854 |  |  | $ | 9,774 |
Reconciliation of Provision for Income Taxes | The differences between the provision for income taxes computed at the U.S. federal statutory rate and the Company’s actual provision for income taxes are as follows (in thousands):
|  | Year ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Provision for income taxes at U.S. Federal statutory rate |  | $ | (3,180 | ) |  | $ | 4,071 |  |  | $ | 1,904 |
State taxes |  |  | (604 | ) |  |  | 1,053 |  |  |  | (469 | )
Differential in rates on foreign earnings |  |  | (5,181 | ) |  |  | (9,924 | ) |  |  | (1,842 | )
Losses for which no benefit is taken |  |  | 7,279 |  |  |  | 9,185 |  |  |  | 6,880 |
Change in valuation allowance |  |  | (1,104 | ) |  |  | — |  |  |  | (450 | )
Change in liabilities for uncertain tax positions |  |  | 1,708 |  |  |  | (1,540 | ) |  |  | 1,261 |
Non-deductible stock-based compensation |  |  | 1,996 |  |  |  | 1,882 |  |  |  | 1,940 |
Research credits |  |  | — |  |  |  | (2,138 | ) |  |  | (1,404 | )
Non-deductible acquisition related expenses |  |  | — |  |  |  | — |  |  |  | 1,289 |
Non-deductible meals and entertainment |  |  | 232 |  |  |  | 237 |  |  |  | 165 |
Adjustments related to tax positions taken during prior years |  |  | 619 |  |  |  | (255 | ) |  |  | — |
Foreign income inclusion |  |  | 317 |  |  |  | — |  |  |  | 403 |
Adjustment related to property and equipment |  |  | — |  |  |  | — |  |  |  | 182 |
Tax-exempt investment income |  |  | (248 | ) |  |  | (71 | ) |  |  | (180 | )
Other |  |  | 18 |  |  |  | 354 |  |  |  | 95 |
Total provision for income taxes |  | $ | 1,852 |  |  | $ | 2,854 |  |  | $ | 9,774 |
Components of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows (in thousands):
|  | December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Deferred tax assets: |  |  |  |  |  |  |  |  |  |  |  |
Reserves and accruals |  | $ | 31,999 |  |  | $ | 31,208 |  |  | $ | 33,741 |
Net operating loss carryovers |  |  | 27,522 |  |  |  | 24,852 |  |  |  | 27,431 |
Research and development credit carryovers |  |  | 13,704 |  |  |  | 13,500 |  |  |  | 12,136 |
Deferred stock-based compensation |  |  | 7,684 |  |  |  | 6,643 |  |  |  | 6,063 |
Other tax credits |  |  | 2,207 |  |  |  | 2,764 |  |  |  | 2,813 |
Total deferred tax assets |  |  | 83,116 |  |  |  | 78,967 |  |  |  | 82,184 |
Valuation allowance |  |  | (34,347 | ) |  |  | (28,354 | ) |  |  | (26,557 | )
Net deferred tax assets |  |  | 48,769 |  |  |  | 50,613 |  |  |  | 55,627 |
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | (5,485 | ) |  |  | (5,434 | ) |  |  | (3,320 | )
Intangibles |  |  | (11,656 | ) |  |  | (17,668 | ) |  |  | (26,172 | )
Other |  |  | (483 | ) |  |  | (135 | ) |  |  | (1,066 | )
Net deferred tax liabilities |  | $ | (17,624 | ) |  | $ | (23,237 | ) |  | $ | (30,558 | )
Activities Related to Valuation Allowance | The following table summarizes the activity related to the Company’s valuation allowance (in thousands):
|  | Year ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Balance at beginning of period |  | $ | 28,354 |  |  | $ | 26,557 |  |  | $ | 18,025 |
Additions |  |  | 5,993 |  |  |  | 1,797 |  |  |  | 8,532 |
Deductions |  |  | — |  |  |  | — |  |  |  | — |
Balance at end of period |  | $ | 34,347 |  |  | $ | 28,354 |  |  | $ | 26,557 |
Activities Related to Gross Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s gross unrecognized tax benefits (in millions):
|  | Year ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Balance at beginning of period |  | $ | 52.5 |  |  | $ | 48.4 |  |  | $ | 47.0 |
Increases in balances related to tax positions taken during current year |  |  | 0.6 |  |  |  | 6.6 |  |  |  | 7.8 |
Expiration of the statute of limitations for the assessment of taxes |  |  | (0.9 | ) |  |  | (2.1 | ) |  |  | (5.3 | )
Decreases in balances related to tax positions taken during prior years |  |  | (0.1 | ) |  |  | (0.4 | ) |  |  | (1.1 | )
Balance at end of period |  | $ | 52.1 |  |  | $ | 52.5 |  |  | $ | 48.4 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure of unrecognized tax benefits for which a material change is reasonably possible in the next twelve months, typically including the nature of the uncertainty, the event(s) that could cause a material change, and an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made. An unrecognized tax benefit is the difference between a tax position taken in a tax return and the amounts recognized in the financial statements for which it is more likely than not, based on the technical merits of the position, that the tax position will not be sustained upon examination. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 48 -Paragraph 21 -Subparagraph d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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- Definition Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 26 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Valuation Allowance -URI http://asc.fasb.org/extlink&oid=6528051 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43 -Subparagraph c -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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